Demand for AI servers continues to be strong, driving the operational growth of Wistron and its subsidiary Wiwynn. Wistron's revenue in October hit the second highest in a single month.
Demand for AI servers continues to be strong, driving the operational growth of Wistron (3231) and its subsidiary Wiwynn (6669). Wistron's revenue in October hit the second highest in a single month, and the cumulative revenue for the first ten months has nearly doubled year-on-year. Wistron is optimistic that the momentum of AI-related products will continue to increase in the fourth quarter, and sales will be concentrated in November and December. Wiwynn simultaneously announced its third-quarter financial report, with single-quarter revenue and profit hitting record highs. The two companies continue to benefit from the demand for AI data centers.
Wistron's consolidated revenue in October was 402.615 billion yuan, a monthly increase of 5.73% and an annual increase of 1.18 times. The cumulative revenue for the first ten months of this year reached 3.29 trillion yuan, an annual increase of 99.53%. Observing the shipment performance of the three major products, notebook computers shipped 1.2 million units in October, a monthly decrease of 20% and an annual decrease of 42.86%; desktop computers shipped 500,000 units, which was flat month-to-month and an annual decrease of 44.44%; monitor shipments were 850,000 units, a monthly decrease of 10.53% and an annual decrease of 5.56%.
Looking forward to the fourth quarter, Wistron pointed out that the shipment trend of each product line is consistent with previous expectations. Affected by seasonal and other factors, notebook computers are expected to show a double-digit percentage decline in shipments in the fourth quarter compared with the third quarter. Desktop computers and monitors are expected to be roughly the same as the third quarter. As for AI-related products, the overall trend in the fourth quarter maintained a continuous upward trend, and the momentum for sales was mainly concentrated in November and December, becoming an important observation indicator for operations at the end of the year.
As for Wiwynn, in the third quarter, consolidated revenue was 434.618 billion yuan, an increase of 62.9% year-on-year, net profit after tax was 23.364 billion yuan, an increase of 51.6% year-on-year, gross profit margin was 8.9%, operating profit margin was 7.5%, net profit margin after tax was 5.4%, and earnings per share were 41.46 yuan, which was higher than the 27.80 yuan after retrospective adjustment for ex-rights in the same period last year. Both single-quarter revenue and profit set a new historical record.
In the first three quarters, Wiwynn's consolidated revenue was 989.278 billion yuan, an annual increase of 50.3%, and its net profit after tax was 52.448 billion yuan, an annual increase of 40.5%. Earnings per share were 94.04 yuan, higher than 67.34 yuan in the same period last year. Both cumulative revenue and profit reached a record high, and exceeded last year's full-year level.
Regarding subsequent operations, Wiwynn pointed out that the recent demand for data centers has remained strong, but due to the tight supply of raw materials, short-term single-month revenue may fluctuate; in addition, the company will also pay close attention to the potential impact of the U.S. midterm election results on data center policies and carefully evaluate industry changes, but remains optimistic about the long-term development of the AI and data center markets.
In response to operational needs, Wiwynn's board of directors simultaneously approved an additional capital increase of US$250 million in the US subsidiary and US$200 million in the Malaysian subsidiary, for a total of US$450 million. It also plans to issue up to 18 million ordinary shares to participate in overseas depositary receipts (GDRs) to enrich working capital and continue to deepen the development of technologies and products such as computing, cooling and power supply.
